FREE AND STUDY GAMES ABOUT CHAPTER 8 SAVINGS CE

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FREE AND STUDY GAMES ABOUT CHAPTER 8 SAVINGS CE

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -27 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Financial institutions that offer memberships to people who share a common bond, such as people in a particular profession, company, or labor union, are

Answer:

credit unions Question 2: Interest that is paid on the principal and also on previously earned interest, assuming that the interest is left in the account, is called

Answer:

Compound interest

Question 3: A dividend is not actually a share of a company's profits.

Answer:

False

Question 4: Money in savings accounts usually earns _____.

Answer:

Interest

Question 5: Use the rule of 72 to figure how many years it will take to double your money if you have $750 at 7% interest

Answer:

72/7=10.29

Question 6: If you deposit $200 in an account that pays 6 percent simple interest per year, what would be the balance in your savings account at the end of the first year?

Answer:

$212

Question 7: The dollar value printed on a bond is the number of the bond

Answer:

False Question 8: When you save, you trade spending now for the ability to spend in the Future.

Answer:

True

Question 9: A written promise to pay a debt by a specified date is called a

Answer:

bond

Question 10: Many compound interest calculators are available on the Internet.

Answer:

True

Question 11: The higher the APR, the less income your deposit will earn.

Answer:

False

Question 12: Almost all deposits are insured by a federal government agency.

Answer:

True

Question 13: Use the rule of 72 to figure how many years it will take to double your money if you have $750 at 5% interest

Answer:

72/5=14.4

Question 14: Early withdrawal on a CD is usually subject to a(n) _____.

Answer:

Penalty Question 15: A good way to save successfully is to make saving a regular payment from each paycheck.

Answer:

True

Question 16: Interest can be compounded annually, semiannually, and quarterly

Answer:

True

Question 17: Authorizing your employer to deposit a certain amount of

each paycheck into your savings is called an automatic payroll _____.

Answer:

deduction Question 18: Which of the following specializes in lending to consumers who want to buy homes?

Answer:

savings and loan associations Question 19: If interest at 6 percent is compounded annually on Carlos' $500 savings account, how much will he have in his account at the end of two years, assuming that he withdraws nothing during the two years?

Answer:

$561.80

Question 20: Interest paid annually at the end of the year on the average balance in a savings account is

Answer:

simple interest Question 21: Use the rule of 72 to figure how many years it will take to double your money if you have $750 at 9% interest

Answer:

72/9= 8

Question 22: Simple interest is earned on just your principal, not on the interest earned previously.

Answer:

True Question 23: Savings accounts are offered by all savings institutions, a place in which you can deposit money, a way you can earn interest

Answer:

True

Question 24: The more often interest is compounded, the less interest you make.

Answer:

False Question 25: Money market accounts usually pay higher interest rates than regular savings accounts.

Answer:

True

Question 26: The money you deposit in a savings account, CD, or other

savings option is called the _____.

Answer:

Principle